Stocks are lower this morning on overseas weakness. Bonds and MBS are up. Slow news day.
China has given up on using state funds to support its stock market. The government has spent about $200 billion trying to support the stock market.
The highlight of the week will be the jobs report on Friday. This will be the last jobs report ahead of the September FOMC meeting. After last week’s market sell-off, the Fed Fund futures contracts took their assessment of a Sep hike from around 50% to about 30%.
Aside from the jobs report, we have some important economic data this week with the ISM surveys and construction spending. That said, the jobs report will be the big event.
The ISM Milwaukee Index came in at 47.67, a bit lower than expectations.
The Chicago Purchasing Manager’s index was almost flat at 54.4.
Stanley Fischer made some hawkish comments in Jackson Hole on Friday, which is what stopped the rally in stocks.
I had a long interview with Louis Amaya on his Capital Markets Today show. You can access it here. I discuss the economy, real estate, the Fed and China. The interview starts at the 3 minute mark.
Filed under: Morning Report |